Derivatives contributed to the last financial crisis and “may still endanger the financial system.” Based on FDIC records, U.S. banks hold derivative instruments with “a nominal value of $250 trillion – or about 150 times the aggregate balance sheet equity of these same banks.”

“Leaders of the biggest emerging markets agreed on steps to increase lending in local currencies to foster trade.” These BRICS economies “accounted for 15 percent of global trade in 2010, up from 3.6 percent in 1990,” with nearly a quarter of world GDP, up from 16% in 2000.“Leaders of the biggest emerging markets agreed on steps to increase lending in local currencies to foster trade.” These BRICS economies “accounted for 15 percent of global trade in 2010, up from 3.6 percent in 1990,” with nearly a quarter of world GDP, up from 16% in 2000.

“Squabbling over the difference between €500 billion and €740 billion looks a lot like deck-chair management.” How big should the European Stability Mechanism (ESM) be? Angela Merkel now supports expanding the bailout fund to €700 billion from €500 billion. The European Commission seeks even more. “Even if the ESM had the €940 billion that the Commission wants, the fund still won’t likely be big enough to save Spain and Italy if they end up asking for rescue. The financing needs of Madrid and Rome alone are likely to top €1.2 trillion over the next two years.” “Squabbling over the difference between €500 billion and €740 billion looks a lot like deck-chair management.” How big should the European Stability Mechanism (ESM) be? The current €500 billion appears insufficient. Angela Merkel now supports expanding the bailout fund to €700 billion from €500 billion. The European Commission seeks even more. “Even if the ESM had the €940 billion that the Commission wants, the fund still won’t likely be big enough to save Spain and Italy if they end up asking for rescue. The financing needs of Madrid and Rome alone are likely to top €1.2 trillion over the next two years.”

“The Supreme Court should uphold the Health Care Law 9-0.” In contrast to many developed countries, the U.S. does not yet offer universal health care. But under President Obama…it has plans. The Supreme Court is currently examining the constitutionality of the planned healthcare law, which would require every citizen to have a provider.

Much has been made of the wealthiest 1 percent this year and the great divergence in fortune separating them from the other 99 percent. “The bottom 99 percent received a microscopic $80 increase in pay per person in 2010, after adjusting for inflation. The top 1 percent had an 11.6 percent increase in income.”

In China, “the desperate scramble for parking spots has been added to the problems of chronic congestion, rising petrol prices and choking pollution.” There just aren’t enough spaces. Scuffles and even protests are arising. In Beijing, things are particularly tight. With 5 million cars and only 740,000 parking spaces, the city attempted to deal with the problem by quadrupling parking fees overnight.

In China, “the desperate scramble for parking spots has been added to the problems of chronic congestion, rising petrol prices and choking pollution.” There just aren’t enough spaces. Scuffles and even protests are arising. In Beijing, things are particularly tight. With 5 million cars and only 740,000 parking spaces, the city attempted to deal with the problem by quadrupling parking fees overnight.

The system which allows the U.S. to appoint the World Bank president and Europe to appoint the IMF head is “unfair.” That said, the Financial Times does, however, support President Obama’s surprise choice: Jim Yong Kim. “There is no indication that the White House will now allow an open contest for the World Bank…. But if Mr. Kim is indeed appointed, it will be a choice that the rest of the world can welcome.”

“The pace of world events keeps speeding up, and that includes the rapidity with which North Korean dictators break their promises.” North Korea has announced plans for a missile launch. This is less than three weeks since reaching a food aid agreement with the U.S. “The only message the North’s dynastic junta will understand is if the West now cuts off the food aid. Even better if the U.S.—or preferably, Japan—blows the missile out of the sky.”

“The pace of world events keeps speeding up, and that includes the rapidity with which North Korean dictators break their promises.” North Korea has announced plans for a missile launch. This is less than three weeks since reaching a food aid agreement with the U.S. “The only message the North’s dynastic junta will understand is if the West now cuts off the food aid. Even better if the U.S.—or preferably, Japan—blows the missile out of the sky.”

The Deutsche Boerse (DB) plans to sue the EU for blocking its planned merger with NYSE Euronext. DB “plans the suit in order to recoup some of its merger costs and to clear the way to potentially make a future deal in which it could expand its derivatives operation.” DB, however, has no plans to revive the NYSE Euronext deal. DB’s main concern is that the definition of “derivatives markets” be expanded to include OTC trading, thus making future acquisitions of derivatives operations less likely to trigger monopoly concerns.

The Deutsche Boerse (DB) plans to sue the EU for blocking its planned merger with NYSE Euronext. DB “plans the suit in order to recoup some of its merger costs and to clear the way to potentially make a future deal in which it could expand its derivatives operation.” DB, however, has no plans to revive the NYSE Euronext deal. DB’s main concern is that the definition of “derivatives markets” be expanded to include OTC trading, thus making future acquisitions of derivatives operations less likely to trigger monopoly concerns.

“Our long economic winter is a pleasant summer in distant places.” Developed nations have battled economic insecurity over the past several years, but things have actually gotten better in much of the world. Extreme poverty “has been declining in every developing region” and, for the first time since 1981, the rate of extreme poverty is less than 50% in Africa. The UN’s first Millennium Development Goal was to halve the global rate of extreme poverty by 2015. That goal was accomplished in 2010. With these achievements in mind, things aren’t as bad as they might otherwise seem.